El Salvador experienced a notable shift in the utilization of Bitcoin, with 12% of the local population engaging in cryptocurrency transactions for goods and services in 2023. This insight stems from an annual survey conducted by José Simeón Cañas Central American University, which interviewed 1,280 respondents in December 2023.
El Salvador’s Bitcoin adoption figures explained
Comparing the findings to the previous year reveals a decline in Bitcoin adoption, dropping from 24.4% in 2022 to the reported 12% in 2023. The survey sheds light on the frequency of Bitcoin use, with almost half of the respondents (49.7%) using the cryptocurrency for transactions between one to three times. In contrast, 20% of participants made more extensive use, conducting 10 or more transactions. The sectors witnessing the most significant Bitcoin expenditure were groceries (22.9%) and supermarkets (20.9%), followed closely by veterinary clinics (15%).
Despite the decrease in Bitcoin transactions, there is a noteworthy increase in the perception that family life improved due to Bitcoin becoming legal tender. In 2022, only 3% believed in this improvement, whereas the figure rose to 6.8% in 2023. This suggests a growing association between Bitcoin’s integration into the economy and perceived improvements in the daily lives of Salvadorans. Interestingly, over a third of respondents (34.3%) feel that the overall economic situation in the country improved, attributing this improvement mainly to a reduction in crime (24.3%).
Public perception and government concerns
Surprisingly, a mere 0.5% of Salvadorans associate Bitcoin with the enhancement of the economy. The 45-page survey, however, lacks inquiries regarding the Salvadoran government’s Bitcoin investments, raising questions about the public’s awareness and understanding of such endeavors. This omission is crucial as concerns about the government’s Bitcoin investments are underscored by the “Nayib Bukele Portfolio Tracker,” revealing that the government’s BTC portfolio has yielded approximately 0.57% in profit. Despite this financial gain, a significant portion of the population appears dissatisfied with the government’s allocation of public funds to Bitcoin.
The survey results highlight a nuanced perspective on Bitcoin’s impact on the Salvadoran economy. While some perceive positive changes in family life and the overall economic situation, a substantial number remain skeptical about the connection between Bitcoin and these improvements. Additionally, the decline in Bitcoin usage suggests a potential reassessment of the cryptocurrency’s role in everyday transactions among the Salvadoran population. Public sentiment regarding the government’s involvement with Bitcoin is divided, with 77.1%.
This has shown a desire for the government to cease “spending public money on Bitcoin.” As the Salvadoran government navigates its Bitcoin-related initiatives, these survey results provide valuable insights into the evolving dynamics between the population, Bitcoin adoption, and government decisions. The survey signals a need for increased transparency and communication to address public concerns and ensure a more informed and inclusive approach to cryptocurrency policies in El Salvador.
